As companies grow, what they need from vendors and partners changes. It’s no different when it comes to Employer of Record (EOR) providers. The perfect EOR is the one that fits your unique business needs, and as those change, your EOR may be able to evolve with you, or it may be time to part ways. EORs provide a range of crucial HR services to their clients, including benefits, payroll and employment outsourcing. It’s important to companies to regularly assess their HR needs and consider if their EOR is still meeting them. If not, it may be time to look for a new EOR. In this blog, we go over why and how to go about changing EOR providers.
What is an EOR Employer of Record?
An employer of Record is an organization that takes on managing payroll, benefits and in-country compliance for businesses that don’t have a local subsidiary. EORs hire employees on behalf of their clients, making it easy for them to quickly expand their workforce, without having to create a new entity or building a Human Resources department. EORs can take over all local HR functions or work together with your existing HR team. They also take advantage of economies of scale to offer benefits and payroll to your team at a lower cost than a new small business would be offered.
EORs take on important administrative and compliance functions that have a huge impact on your team. That’s why it’s so important to partner with the right one.
Why Companies Change EOR Service Providers
When companies decide to change EOR providers, it’s often driven by internal growth, a need to seek cost savings, or unsatisfactory services. That doesn’t necessarily mean that the EOR has let their clients down; it may be that you’re just looking for something more. EORs have diverse offerings and pricing models. When yours doesn’t fit anymore, it doesn’t mean it’s time to settle, it means it’s time to switch!
You’ve Outgrown Your EOR
Your company is growing quickly but your EOR, with whom you’ve had a great relationship, can’t keep up. Onboarding new workers is slowing down, errors are creeping up in your payroll invoices. As happy as you’ve been with your EOR up until now, you’ve reached their capacity limit and it’s time for a change. You need an EOR provider that can handle bigger groups of workers and deliver great service at a faster pace.
You’re Looking for Cost Savings
Your company is reprioritizing and looking to find a less expensive option for EOR services. While you’ve been happy with what your current EOR can do, you aren’t making full use of their services and need to downsize to a leaner, more cost effective package. You need an EOR that can tailor their services to meet your needs and your budget.
Your EOR Isn’t Meeting Your Needs
You need more. Your EOR hasn’t done anything wrong but you need a better benefits package, recruiting support, more local expertise, or another HR service that they just can’t provide. When your EOR is no longer meeting your needs, it’s time to look at what else the market can provide. Fortunately, there are other EOR options, many of which can meet the needs of any growing company.
What to Consider When Changing EORs
You know it’s time to change your EOR, but where do you get started and what should you watch out for?
What Services Does the EOR Offer?
Start with your needs, not with what EORs offer. What do you need that you aren’t getting now? Once you’ve identified what your current EOR isn’t providing, it makes it much easier to understand if an EOR’s offering is right for you. When you’re considering a new EOR, try to get a sense of their full-service offering, not just what you’re looking for today. This helps you get a sense of whether this EOR can grow with you.
In addition to great Employer of Record services, look for:
- A payment solution that helps you manage invoices and international payments
- Employee management tools and a fully digital experience
- Flexible benefits options for your whole team including part time employees and contractors
Do They Meet Your Standards?
EORs provide services that have a big impact on your workforce, so it’s essential that they meet your standards of service. When EORs don’t live up to your expectations, they can create tension between you and your team. That’s why it’s important to know what kind of service you can expect from a EOR.
Questions to ask:
- Will we be supported by certified Human Resources and Payroll professionals?
- How quickly do you respond to support queries?
- What happens if there’s an error in my payroll and how quickly can it be fixed?
- Where do you store employee data and who has access to it?
Once you’ve had a chance to speak to a few EORs, compare their offerings based on price, service offering, customer service, and most importantly, if they meet your needs. Your EOR fit is the one that meets you where you are today and will grow with you.
For a deeper dive into how to choose an EOR service provider, check out this blog.
Why Change to Canadian Payroll Services
Canadian Payroll Services is an Employer of Record solution in Canada. We specialize in helping global companies grow their teams in Canada and provide unmatched local expertise on tax an employment law and the local talent market.
We provide:
- Compliant local agreements for employees and contractors in every province
- Payroll services including expense management, stipends, premiums and overtime
- Self-serve employee tools for paystubs, expenses and time off
- Tools to help our clients manage international payments
- Support from certified Human Resources and Payroll professionals
- Benefits packages for every employee and contractor type including, insurance, flexible spending accounts, retirement savings plans and an employee assistance program
If your current EOR hasn’t been able to provide you and your team the level of local support and knowledge that you need, Canadian Payroll Services can help. Contact us to learn more!
